The trustees approved a 5 percent hike for in-state undergrads and a 2.1 percent increase non-resident undergrads on Thursday afternoon.

The increase will put yearly tuition at $10,238 a year for in-state students and $24,134 a year for out-of-state students.

Trustees approved a $1.2 billion dollar budget for 2014-15.

The tuition increases will offset a $2.1 million state budget cut, provide $2.5 million in additional scholarships and cover increased health insurance costs and 2 percent raises for UofL faculty and staff.

Earlier this month, the Kentucky Council on Postsecondary Education announced it will allow colleges to raise tuition by up to eight-percent over the next two years.

The hike is capped at no more than 5 percent in either year.

The panel said the increase is necessary due to less state funding and higher university expectations.

University of Kentucky students would face tuition increases of between 5 and 8 percent in the fall under a proposal from the school's president.

The Lexington Herald-Leader reports that Eli Capilouto is proposing that in-state students pay 5 percent more in tuition next year and out-of-state students pay 8 percent more.